Which of the Following Statements Is True

question 88

Multiple Choice

Which of the following statements is true?

• A)Before the advent of a money economy,the double-entry accounting system was not feasible.
• B)Accounting systems developed in the 18^th century because,by then,most people were literate.
• C)Double-entry accounting systems have existed for at least 2,000 years.
• D)The double-entry accounting system came about as a result of the Great Depression.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, illustrating how efficiently a company is using its assets to generate earnings.

DSO

Days Sales Outstanding refers to the average period a company requires to receive payment following a sale.